29, Apr 2024
CSB Bank Limited Financial Results for the Quarter Year ended March 31, 2024
The Board of Directors of CSB Bank took on record the audited financial results for the 4thquarter (Q4 FY 2024) and year ended 31st March 2024, in their meeting dated 26.04.2024.
Highlights
- Profit After-tax: Bank recorded a Net profit of Rs 567 Crs for the year ended 31st March 2024as against a net profit of Rs 547 Crs in FY 23. Net profit improved by 4% on a Y-o-Y basis. Bank continued with its policy of maintaining accelerated provisioning during this quarter as well with few more stringent norms. RoA of the Bank is at 1.79% for FY 24.
- Strong Operating Performance: Operating profit of bank for FY 24 was Rs 780 Crs registering YoY growth of 10% as against Rs 707 Crs during FY 23. Q4 FY 24 operating profit grew YoY by 13% and stood at Rs 228 Crs as against Rs 202 Crs in Q4 FY 23.
- Net Interest Income (NII): Bank recorded a stable NII growth of 11% both on a YoY and quarterly basis. NII forFY 2024& Q4 FY 24 stood at Rs 1476 Crs (Rs 1334 Crs for FY 2023)and Rs 386 Crs (Rs 349 Crs for Q4 FY 23) respectively.
- Non-Interest Income for FY 2024 saw an impressive growth of 85% over FY 2023 mainly due to increased Fee Income, Forex income, Treasury Profits etc. On a quarterly basis ie, Q4 FY 24 vs Q4 FY 23, non- interest income has registered a growth of 56%
- Cost Income Ratio for Q4 FY 24 stood at 60.86% as against 57.45% for Q4 FY 23 and the corresponding ratio forFY 2024 was at 62.15% as against 57.12% for FY 23. The increase in CIR is mainly due to the massive investment made by the bank in building the new systems, processes, distribution, IT upgradations etc., to scale up its activities eventually as a part of SBS 2030.
- Healthy Asset Quality & Provisioning
Gross NPA and Net NPA ratios are at 1.47% and 0.51% respectively as at 31.03.2024
| Particulars | Q4 FY 24 | Q3 FY 24 | Q2 FY 24 | Q1 FY 24 | FY 23 |
| Gross NPA % | 1.47% | 1.45% | 1.65% | 1.79% | 1.26% |
| Net NPA % | 0.51% | 0.31% | 0.33% | 0.32% | 0.35% |
| Provisioning Coverage Ratio | 86.44% | 91.85% | 91.75% | 92.54% | 92.11% |
- Robust Capital Structure – Capital Adequacy Ratio is at a healthy level of 24.47%, and is well above the regulatory requirement.
- Comfortable Liquidity Position – Liquidity Coverage Ratio is comfortable at 117% (average basis)
- Total Deposits grew by 21 % YoY. CASA book is at Rs 8085 Crs with a share of 27.20%
- Advances (Net) grew by 18% YoY to Rs 24336 Crs as on 31.03.2024with a CD ratio of 82%
Performance Highlights:
| (Rs Crore) | Q4 FY 24 | Q4 FY 23 | Inc/
Dec% |
Q3 FY24 | QoQ% Growth | FY 24 | FY 23 | Inc/
Dec% |
| Interest Income | 794.87 | 636.50 | 25% | 761.84 | 4% | 2,927.54 | 2,319.65 | 26% |
| Interest Expense | 408.84 | 288.05 | 42% | 379.17 | 8% | 1,451.13 | 985.80 | 47% |
| Net Interest Income | 386.03 | 348.45 | 11% | 382.67 | 1% | 1,476.41 | 1,333.85 | 11% |
| Treasury Profits | 17.13 | 7.70 | 122% | 12.56 | 36% | 47.65 | 2.44 | 1851% |
| Other Income | 179.38 | 118.29 | 52% | 112.78 | 59% | 536.64 | 313.24 | 71% |
| Total Non-Interest Income | 196.51 | 125.99 | 56% | 125.34 | 57% | 584.29 | 315.68 | 85% |
| Net Operating Income | 582.54 | 474.44 | 23% | 508.01 | 15% | 2,060.70 | 1,649.53 | 25% |
| Staff Cost | 190.01 | 153.34 | 24% | 172.81 | 10% | 714.71 | 552.82 | 29% |
| Other Opex | 164.53 | 119.22 | 38% | 139.33 | 18% | 566.07 | 389.31 | 45% |
| Total Opex | 354.54 | 272.56 | 30% | 312.14 | 14% | 1,280.78 | 942.13 | 36% |
| Operating Profit | 228.00 | 201.88 | 13% | 195.87 | 16% | 779.92 | 707.40 | 10% |
| Provisions other than Tax | 21.61 | -9.20 | -4.54 | 18.48 | -26.21 | |||
| PBT | 206.39 | 211.08 | -2% | 200.41 | 3% | 761.44 | 733.61 | 4% |
| Tax | 54.93 | 54.74 | 0% | 50.44 | 9% | 194.62 | 186.25 | 4% |
| PAT | 151.46 | 156.34 | -3% | 149.97 | 1% | 566.82 | 547.36 | 4% |
| Deposits | 29,718.80 | 24,505.81 | 21% | 27,344.83 | 9% | 29,718.80 | 24,505.81 | 21% |
| Advances(Net) | 24,335.58 | 20,650.65 | 18% | 22,658.16 | 7% | 24,335.58 | 20,650.65 | 18% |
| CASA | 8,084.41 | 7,886.26 | 3% | 7,542.62 | 7% | 8,084.41 | 7,886.26 | 3% |
| Gold(Net) | 11,796.98 | 9,681.05 | 22% | 10,817.06 | 9% | 11,797.98 | 9,681.05 | 22% |
| CASA% | 27.20% | 32.18% | -5% | 27.58% | – | 27.20% | 32.18% | -5% |
CEO Speak:
Speaking about the performance Mr. Pralay Mondal, Managing Director & CEO said, “This is the second year of our SBS 2030 vision. In a journey like this what is more important is relentlessly pursuing the vision set in enjoying the ups and surfing through the challenges as a team. Despite the challenges posed by the economic conditions, regulatory changes, liquidity constraints, increased competition etc., we got our priorities right and could post reasonably good numbers.
We could register a net profit of Rs 567 Crs; backed by a 20% growth in Business; 18% net loan book growth and 21% deposit growth. We continued to grow faster than the average industry growth trends in both deposits and advances. Our operating profit recorded a growth of 11% supported by growth in NII and other income. Key indicators like NIM, CRAR, RoA, NPA ratios etc. continue to be strong. We continued our efforts in building the distribution by opening another 76 branches.
The most critical milestone that we look forward to in FY 25 is the roll out of phase I of CBS migration and the right execution will act as a catalyst in our progressive journey. We will be strengthening the SME & Corporate segments and strive for a better market share without losing our focus on retail including gold. Business mix will tilt towards the anticipated SME & WSBsegment and for the betterment of the Bank.
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- By Rabindra
